TVING, a leading domestic OTT (Online Video Service) player, has failed to narrow the gap with Netflix despite increasing its user base. Concerns are emerging that the weakening competitiveness of domestic platforms, compounded by a decline in the number of drama productions and soaring production costs, could escalate into a crisis across the entire K-content production and distribution ecosystem.
According to mobile analytics firm iGAWorks' Mobile Index on the 29th, TVING's MAU (Monthly Active Users) in August was approximately 8.15 million, reaching only half the level of Netflix (approximately 16.2 million). Compared with August of last year, when TVING had 7.56 million users and Netflix had 14.75 million, both platforms saw user growth, but the gap widened from approximately 7.19 million to 8.05 million.
The domestic content production base needed to fill the platforms is also weakening. According to data presented by Associate Professor Jo Young-shin of Dongguk University at a seminar held on the 10th by the office of Democratic Party of Korea lawmaker Han Jun-ho and the Korean Broadcasting Society, the number of domestic drama productions decreased by approximately 30%, from 141 in 2022 to around 100 in 2024. In contrast, it was analyzed that the release of domestic originals by Netflix and Disney+ during the same period was maintained or increased.
The burden of production costs is growing increasingly heavy. According to data revealed at a special session of the '2026 International Broadcasting & Content Market (BCWW)' on the 14th, the per-episode production cost for domestic dramas surged more than sixfold, from 550 million won in 2018 to 3.5 billion won in 2024. Meanwhile, the proportion of broadcasting rights fees within production costs dropped from the 40th–70% range to the 20th–30% range. It is analyzed that even when combining domestic and overseas sales, the production cost recovery rate remains at a level of only 75–80%.
The weakening competitiveness of domestic OTTs could impact not only K-content but also related industries. According to the Korea Creative Content Agency, it was analyzed that for every $100 million increase in Hallyu industry exports, exports from related industries such as cosmetics, food, clothing, and IT devices increase by $202 million. The domestic production-inducing effect reached 782.4 billion won, and the employment-inducing effect amounted to 3,389 people.
Ultimately, the key lies in the stamina of domestic platforms to compete with global OTTs for content acquisition while bearing the soaring production costs. It is pointed out that if the competitiveness of domestic OTTs weakens further, production companies' distribution options and negotiating power could also diminish, making it a challenge how to secure the domestic distribution foundation that will support the K-content ecosystem.
in TECH
